IT'S enough to make you choke on your toast - it has emerged that Vegemite, of all things, is now much cheaper overseas than here.

After revealing earlier today the cost of goods in Australia is stratospheric when measured against similar nations, a new comparison by News Limited had found that our iconic breakfast spread is nearly 40 per cent more expensive here than in Britain.

A 220g jar of Vegemite costs £1.97 at UK supermarket chain ASDA and £1.98 at rivals Tesco, Waitrose and Sainsbury’s, according to the grocery comparison site mysupermarkets.co.uk. Its average price over the past year is also £1.98.

The same jar costs $4.17 at Coles, which is 39 per cent more than the UK price.

The unit price – the cost per 100g – of the UK Vegemite is $1.37. The Aussie price is $1.90 per 100g.

The most comparable jar sold by Woolworths is 280g for $5.36, or $1.91 per 100g.

News Limited this morning asked Kraft Foods Australia why Vegemite – which is made here – costs less in the UK.

A spokeswoman for Kraft Foods said: “It appears that the current batch of Vegemite available for sale in the UK was purchased at a time when the Australian dollar versus the British pound appreciated by around 10 per cent.

“Given the long-shelf life and iconic nature of Vegemite, it is always in demand overseas, so we often see bulk purchases when there are currency dips.”

At the time of publication News Limited was awaiting an explanation of how much difference this would make to the retail price.

A spokesman for Coles said: “Coles has reduced the cost of shopping for Australian families by hundreds of millions of dollars thanks to our ongoing Down Down price cutting campaign. The price we are able to sell a popular branded product like Vegemite for depends largely on the price we are charged by the manufacturer.”

A spokeswoman for Woolworths said: “We’re a high volume low margin business and our prices are a reflection of the best deal we can get for customers from our suppliers.”

In October last year Woolworths’ new managing director of Australian supermarkets and petrol Tjeerd Jegen publicly chided multinational manufacturers for “unacceptable” prices here.

Mr Jegen said some were still treating Australia "as an island where people probably don't know what the prices are around the world, which is a wrong assumption".

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Comments on this story

Stephen Posted at 3:45 PM February 13, 2013

Billabong, an Australian company sells its clothes cheaper in the Los Angeles than here, also.

Comment 1 of 42

Ed Loffeld Posted at 3:44 PM February 13, 2013

Try going to Vietnam. Most of our stuff is about half the price. Arnotts Tim Tams there, same size pack, made here are $0.75 per packet. Ripped off here....

Comment 2 of 42

cost cutter Posted at 3:39 PM February 13, 2013

Simple, get on a PC and buy from overseas.

Comment 3 of 42

J S of Perth Posted at 3:33 PM February 13, 2013

Another example, Merrel mens sandals, in various Perth Shops, circa $130, bought them online from USA at $45, although I paid hefty postage of $40, still landed here for $85.

Comment 4 of 42

krankyoldwoman of queensland Posted at 3:33 PM February 13, 2013

They probably see our government milking us blind and thought we were suckers

Comment 5 of 42

Sam of Gold Coast Posted at 3:33 PM February 13, 2013

I was always told the reason cosmetics, fashion, shoes etc were more expensive in Australia than in the US or the UK was because of the freight in getting them here. Yet when I visit the US, Australian fashion brands such as Sass & Bide and Zimmerman are way cheaper than they are here - just to be competitive with US brands!!!!!!!
We should boycott the lot.

Comment 6 of 42

jindychick of snowy mountains nsw Posted at 3:33 PM February 13, 2013

My parents were recently here from Canada and they were shocked that 24pk canned Coke was $19.99 on sale at Woolies when they pay $3.98 back home full price! I can't even fathom the reason for that much markup...

Comment 7 of 42

Truth Posted at 3:32 PM February 13, 2013

Wow you people are uneducated. Just have a think why we pay more. Rent and Wages and Benefits. We get paid more in wages, Pay 4x more in Rent and Get 3x more benefits than overseas. Thats why its more here. If you want the cheap price then you get Cheap Wages and No Benefits.

Comment 8 of 42

You would never never know of Darwin Posted at 3:32 PM February 13, 2013

And then you should try and live in Drawin....THis place is the biggest rip off area in Australia, and we are treated like second class citirzens...you could add another $10 onto everything that is paid for down south...how about looking into our own back yard before we worry about overseas....

Comment 9 of 42

sam Posted at 3:32 PM February 13, 2013

vegemite is a unique case in my opinion, the cheaper price is probably necessary to draw in consumers as it is relatively unknown abroad and obviously nowhere near as popular... so it would pay to cost it lower in order to possibly expand its popularity in new markets

Comment 10 of 42

brett of belmont Posted at 3:13 PM February 13, 2013

750ml bottle of Shmirnoff vodka in the USA $9.99. 1lt bottle of Absolute $14.99. We pay between $37-42 for the same thing. Even australian wine is cheaper there than here. Add it all up i reakon we are paying 60% or more taxes on our income.

Comment 11 of 42

J.D of Bundaberg Posted at 3:13 PM February 13, 2013

When will it emerge that "australian owned knock off vegemite " is significantly more expensive again? You know the ones, like aus-e-mite that class themselves as a 'gormet' variety vegemite. Sorry folks, Vegemite is a staple.

Comment 12 of 42

richard Posted at 3:12 PM February 13, 2013

...so is (was) Australian red wine in Ontario Canada!...

Comment 13 of 42

David Harvey of Mt Bundey NT Posted at 3:09 PM February 13, 2013

They would have to make it cheaper for people justifying buying the crap.

Comment 14 of 42

Brad of geelong Posted at 3:09 PM February 13, 2013

voilet crumbles are made in Australia and sold in the USA, we pay around $1.85 here but in the US they are around 90cents. The Holden Commodore which was sold in the USA as a Pontiac GTO sold for around $8,000 less than what we paid here for basically the same car. We are truly getting screwed

Comment 15 of 42

angel Posted at 3:06 PM February 13, 2013

Its disgusting and that is why we hardly buy any processed food. I am an Australian that travels and work overseas a fair bit so have seen the price differences myself and tell all my friends and colleague on how ridiculous prices are here in Australia. I buy stuff on ebay from the UK and it is still cheaper than buying here after postage. Woolworths and Coles have got to bring down their prices. I go elsewhere in the meantime.

Comment 16 of 42

True Blue Aussie Battler Posted at 3:03 PM February 13, 2013

Australia - land of the Great Rip Off!
Cost of living has sky rocketed over the last 10 years.
I recall a can of coke (375ml) being 50 cents @ coles/woolies back then, now its like $3 for a 600ml
Before a decent meal of $5
Now a half decent meal is $15
Before housing/rent in the city was $150
Now $450.
Ridiculous!

Comment 17 of 42

Martin of York Posted at 3:02 PM February 13, 2013

Woolworths is in " high volume, low margin business", what a comedian. Fruit, cheese, milk (forget the home brands), cream, vegetables to name only a few products are much more expensive than in other smaller retailers. And what about petrol prices? Low margins as well? Remember when oil was $147.00p/b , petrol was selling at$1.47.cents a liter and Australian dollar was 96cents US? Now the oil is around $97.00p/b, Australian dollar above parity and the unleaded petrol is, yes you guessed it, $ 1.47cents a liter on Thusrsday,Friday,Saturday and 3 cents cheaper on Sunday. Low margins???

Comment 18 of 42

scam watcher of Australia Posted at 3:00 PM February 13, 2013

Why we pay the most for nearly everything should be
independently investigated. They will also find that corruption is legalized here. We all need to do something about it.

Comment 19 of 42

ash Posted at 2:59 PM February 13, 2013

Clearly no one here has ever marketed a product. The reality is Australians buy vegimite. But foreigners don't. The best way to get foreigners hooked on it is to make it cheap. Vegimite is probably being sold at a loss overseas in order to obtain market share. If they sold it at a loss here as well they would stop making it.

Comment 20 of 42

J of Perth Posted at 2:57 PM February 13, 2013

that why i make a trip once a year oversea to buy majority of discrete items....the savings are free ticket and free holiday!
Keep it this way and we will see Australia retails will be gone gone gone...(similar to manufacturing)

Comment 21 of 42

Steve Johnston of Ohio Posted at 2:56 PM February 13, 2013

In Ohio, it is about $9.00 at world market

Comment 22 of 42

Brett of Sydney Posted at 2:52 PM February 13, 2013

While I agree that prices seem to over exaggerated, before everyone jumps on the 'we're getting ripped off' band wagon, it's worthwhile considering the other costs associated with running a business. Wages, rent and electricity costs are all contributing factors to pricesWhere is the comparison on what business in other countries have to pay out? We can't have it all people. You want to get paid at least $20 an hour and only want to pay $1 for vegemite. The sums just don't add up.

Comment 23 of 42

Simmo of Adelaide Posted at 2:51 PM February 13, 2013

after living overseas for years, i am always suspicious of anyone that 'loves' vegemite.. i am aussie through and through, it is the worst tasting thing on earth!!!

Comment 24 of 42

Marlene Posted at 2:48 PM February 13, 2013

It looks and tastes different too. It's not as thick as it used to be and its shinier. Idk what they did to it but they need to change it back.

Comment 25 of 42

Member of Parliament of Australia Posted at 2:47 PM February 13, 2013

That's a bloomin' outrage that is, I'm taking that all the way to the Prime Minster.

Comment 26 of 42

Bert of Australia Posted at 2:47 PM February 13, 2013

We are not paying what it is worth, we are paying what they think they can get out of us.

Comment 27 of 42

Marcus of Taytay Posted at 2:39 PM February 13, 2013

Its even cheaper at times to buy Vegemite here in the Philippines. While if i go to an import store it will be the same if not more however sometimes the local supermarket say the same as Woolworths has the Medium jar on Special for 120 pesos buy 1 take 1 that's 3 dollars

Comment 28 of 42

George of Perth Posted at 2:39 PM February 13, 2013

It comes down to intellect when you realise after years and years of paying too much that you are being ripped off. Shows you the state of the nations intellect only starting to complain about it now. We should have started a price revolution 5 years ago!!!

Comment 29 of 42

leigh of melb Posted at 2:39 PM February 13, 2013

the thing is, this will all blow over after the media stops reporting about how things overseas are cheaper. Nothing will change.

Comment 30 of 42

Steve of Adelaide Posted at 2:33 PM February 13, 2013

The biggest scam? The new 250ml bottles of coke selling for the same price as 330ml. Some cafes and restaurants are selling them for $3.90 - $4.10 which works out at $16 per litre. I take my own drinks to family restaurants and cafes now - (corkage free) - and if they ask - My drinks are special on medical grounds.

Comment 31 of 42

Kerry of Canada Posted at 2:31 PM February 13, 2013

We pay $12.99 in Canada for a small jar.

Comment 32 of 42

Brad Posted at 2:29 PM February 13, 2013

Which is one of many reason that people are now buying on-line. If groceries could be bought from overseas suppliers many would do so. Not because anyone hates Australian manufactures but because of the government taxes, third party middle men and the lack of competition allowing retailers to do what they want.

Comment 33 of 42

Matt of Toronto Posted at 2:26 PM February 13, 2013

Hey I thing your research is wrong wrong wrong on vegimite , I live in Canada and 200g jar costs me $9.90 I'm happy to pay the price it is back home . Stop your complaining.

Comment 34 of 42

Bobby of Melbourne Posted at 2:26 PM February 13, 2013

Disgusting!

Comment 35 of 42

JB Posted at 2:25 PM February 13, 2013

Another day, another sad story in The Great Australian Rip Off.

Comment 36 of 42

BOB Posted at 2:25 PM February 13, 2013

Why not look at state to state first. Tasmanian Beers are cheaper in the Eastern States than in Tasmania. It comes down to what the market allows you to sell the product. Will this really lower prices??? PS the JD has how much Tax in Australia u really can't compare grog in this survey.

Comment 37 of 42

jack of sydney Posted at 2:17 PM February 13, 2013

why are you complaining about this ? Have you check the tax on other countries and other cost related to this?
It is a well know that australia is not very competitive country in the world as some of the car factories have been closed

Comment 38 of 42

Mike K of Radelaide Posted at 2:16 PM February 13, 2013

What an Outrage!

Comment 39 of 42

Jase of Wa,the biggest ripoff state in oz! Posted at 2:15 PM February 13, 2013

And your just saying it now?seen the prices of houses lately?rip off oz,and more to come!

Comment 40 of 42

pbarty of nth qld Posted at 2:14 PM February 13, 2013

nice to see the australian government is looking after it,s own people by having us ripped off

Comment 41 of 42

Have some respect. ! of Gold Coast Posted at 2:13 PM February 13, 2013

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